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• Revenue: EUR 1.1 billion in 2024.

• EBITDA: EUR 242.3 million, margin increased from 21% to 28%.

• Net Income Group Share: EUR 35.5 million.

• Earnings Per Share: EUR 4.57.

• Dividend Proposal: EUR 1.20 per share, same as previous year.

• Net Financial Debt: EUR 849.7 million, leverage at 3.2x EBITDA.

• International Revenue Contribution: Increased from 26% to 32% of total revenue.

• Green Revenue: Over 66% of total revenue classified as green.

• Hazardous Waste Revenue: 69% of total revenue, up from 66% in 2023.

• Operating Cash Flow: EUR 206.4 million.

• CapEx: EUR 93.8 million booked, EUR 79.4 million disbursed.

• Energy Impact: Negative impact of EUR 19.4 million due to energy price drop.

• Acquisition of ECO: Contributed EUR 37.2 million in revenue and EUR 16.1 million in EBITDA for H2 2024.

• 2025 Revenue Target: EUR 1.180 billion, expected growth of 6%.

• 2025 EBITDA Target: EUR 266 million to EUR 275 million.

• Warning! GuruFocus has detected 3 Warning Sign with SECVY.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Seche Environnement SA (SECVY) achieved its revenue target and exceeded its gross operating profit target for 2024.

• The acquisition of ECO in Singapore has strengthened the company's international position and contributed positively to its financial performance.

• The company has made significant progress in reducing greenhouse gas emissions, achieving its targets set for 2025 ahead of schedule.

• Seche Environnement SA (SECVY) has maintained strong operating performance with a high gross operating margin, demonstrating resilience in its growth model.

• The company has successfully integrated acquisitions and implemented business synergies, contributing to solid financial positioning and free cash flow generation.

Negative Points

• The beginning of 2024 was marked by delays in spot businesses, particularly in environmental emergencies and depollution efforts.

• There was a significant drop in energy costs, which impacted the company's revenue growth.

• The financial leverage increased slightly to 3.2x EBITDA, which may limit the company's ability to pursue further acquisitions in the short term.

• The international segment faced challenges, with a decrease in revenue from Southern Africa and Latin America due to economic and political factors.

• The company had to make a provision of EUR 10.2 million for potential non-recovery of costs related to a public service contract in Strasbourg.

Q & A Highlights

Q: The margin is slightly diluted despite the positive contribution of ECO. Is the scope holding back the margin? Can you explain the EUR 10 million provision and the minority stakes situation? A: The margin improvement is due to ECO, but the scope effect includes Furia's integration costs, leading to a dilutive effect. The EUR 10 million provision relates to maintenance and renewal plans for public service contracts, with a reduced likelihood of cost recovery. Regarding minority stakes, the financial partner entered ECO's capital at the end of 2024, impacting debt costs.